relations in the financial statements. Rounding relations are used to change the appearance

of figures in the financial statements and to balance the financial statements. Rounding

relations affects only cells in the financial statement document. It does not affect any

numbers in the Working Papers trial balance. Rounding relations can be set in the financial

statement document, the firm libraries and the cash flows worksheet.

This QuickVid will; 1. Review basic rounding relations

2. Apply a rounding relation 3. Modify a rounding relation

4. Review advanced rounding relations

Please note rounding relations are not the same as currency rounding to thousands or

millions. Rounding relations as they pertain to this QuickVid maybe necessary due to decimals

in the trial balance rounding to whole number in the financial statements therefore creating

discrepancies between two line items that should match. Rounding relations are designed

to automatically resolve these rounding issues in the financial statements.

Once rounding relations are applied the following message appears if rounding errors are occurring.

This can be turned off from the Options drop-down in the financial statements.

Opening the Financial statements as a default rounding relations are turned off.

To access rounding relations. From the template menu, select Options. There two options applicable

to rounding relations, modify and apply rounding relations.

Select Modify rounding relations.

The rounding relations freeze opens displaying all the rounding relation options. From here

you are able to Add, Modify and Delete rounding relations.

A rounding relationship is created between any three cells. It works as follows: the

difference between "Cell A" and "Cell "B" is adjusted to "Cell C", provided the difference

between Cell A and Cell B does not exceed the established tolerance. Each of these cells

must be defined by the user.

Select Modify a rounding relations. Select the "Label" drop-down. CaseWare provides

preexisting rounding relations for the Balance Sheet and Cash Flows. Any rounding relation

that was set up in the content libraries is imported into the financial statements when

content is inserted. Your firm may have modified this or added

additional relations in the library. Classified #11 is a rounding relation established

in the Balance sheet in the current year, while Classified # 12 is a rounding relation

established for the prior year. It is important to remember to review rounding relations for

all the periods displayed in a format. Select Classified #11.

Notice Cell A, B, C are populated with cell numbers and the title and period of the cell

are displayed. Click on the Cell a, Cell B, or Cell C Box and the cells are highlighted

in the financial statement document. A permanent method to view which cells are

affected by rounding relations, from the CaseView menu select View | Preferences and select

"View rounding flags". Select OK. Double-click Cell A to jump to the cell within the financial

statements. In this example, if the difference between

Total Assets and Total Liabilities and Equity is less than 5 the difference will be adjusted

positive or negative to "Payables". When modifying a rounding relation you are

able to modify any CaseWare, Firm or engagement created rounding relation.

For this demonstration selecting Cell A, taking note of the value, then selecting cell B the

difference between these two cells is 3. To apply a rounding relation, from the template

menu select Options | Apply rounding relations. Once applied, a value of 3 is added to the

payables line and the balance sheet balances. Due to the option "View rounding flags" established

in Preferences, notice flags appear in the cell indicating it is a part of a rounding

relation.

In this example there is no other value in the payables line item therefore this is not

an appropriate line to round to. With the rounding still open change Cell C to Receivables.

Take note of the value. Select Save, the value in receivables is changed by 3, no value is

present in the payables line and the balance sheet is balanced.

If we modify the tolerance for this rounding relation to two, select Save. When a rounding

relation exceeds the tolerance numerous Recalculation errors will appear. When an error message

appears, it is necessary to review your financial statements and correct the error. Please note

the dialog will appear multiple times until the rounding discrepancy is resolved for all

the rounding relations in the financial statements.

In this simple example changing the tolerance to 5 again and selecting Save resolves the

recalculation errors.

Additional features within the rounding relations freeze are the ability to add and delete rounding

relations. For advanced users, if desired, multiple rounding

relations can be set by using the plug condition. The Plug condition is the condition that makes

this cell be skipped as the plug cell. If the condition is evaluated to be true, the

difference is not plugged here and another plug cell is searched for. If the condition

is evaluated to be false, the value of the difference between cells A and B goes in cell

C. Use "Add" to create additional cells for multiple plug conditions. Use "Delete" to

remove cells from the multiple plug condition.

Rounding relations combined with Financials feature to link from note, statement and schedules

combined become invaluable tools in enhancing the ability to automate your financial statements.

That concludes the QuickVid on rounding relations, thank you for watching CaseWare QuickVids.